By Henry Ojelu

The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has called on governments at all levels to urgently pursue transformative economic diversification to meet Nigeria’s mounting fiscal challenges and position the economy for sustainable growth.

The charge came at the end of a three-day strategic retreat of the Commission’s Mobilisation and Diversification Committee, M&DC, held in Calabar, Cross River State, from September 11 to 13, under the theme “Clarifying the Strategic Role of the Mobilisation and Diversification Committee and Leveraging Diversification Mandate to Drive Nigeria’s Economic Transformation.”

Declaring the retreat open, RMAFC Chairman, Dr. Muhammed Bello Shehu, represented by Hon. Ismail Mohammed Agaka, Federal Commissioner representing Kwara State, said Nigeria’s fiscal trajectory had reached a critical juncture.

He noted that while expenditure needs continue to rise, internally generated revenue, IGR, in many states remains inadequate, making diversification a national imperative.

“The time has come for all stakeholders to adopt a deliberate and data-driven approach to revenue mobilisation and economic diversification,” he stressed.

Similarly, Chairman of the M&DC and Federal Commissioner representing Edo State, Hon. Victor Eboigbe, said the retreat was convened to address challenges hampering the committee’s performance and to develop practical measures for realistic diversification in line with current economic realities.

In a communiqué issued at the close of the retreat, the Committee called for the inclusion of economic diversification performance as a key proxy in the revenue allocation formula to encourage states and local governments to reduce over-dependence on oil revenue.

It also urged the Commission to develop a comprehensive national policy document on diversification, one that reflects the economic potential and peculiarities of the federal, state, and local governments.

The communiqué further stressed the importance of strengthening collaboration with relevant agencies, private sector actors, and regional development commissions to secure reliable data, promote sustainable investments, and enhance revenue generation.

It recommended stronger public-private partnerships as well as more synergy between federal, state, and local governments to attract capital and boost economic growth.

The retreat also underscored the need for a robust advocacy campaign at zonal levels to build awareness among subnationals and bring the informal sector more effectively into the tax net, with support from banks and financial institutions.

Governments were urged to embark on projects with high revenue potential and significant job creation capacity, while sustaining infrastructure initiatives begun by previous administrations.

For continuity, the Committee advised that past programmes of the Commission on diversification should be reorganised and rebranded to reflect prevailing economic realities.

It concluded that diversification efforts must be deliberate, measurable, and continuously evaluated if they are to drive Nigeria’s economic transformation.